The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate softened by around -0.3% on Thursday morning.
As the People’s Bank of China (PBoC) extends the run of Renminbi fixes, the New Zealand Dollar advanced versus most of its peers despite falling Chinese stocks. Meanwhile, the Pound also advanced versus most of its rivals after fourth-quarter Gross Domestic Product met with estimates of 0.5% growth on the quarter and 1.9% on the year.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.2109.
Pound Sterling to New Zealand Dollar (GBP/NZD) Conversion Rate Predicted to Hold Steady after UK Data Disappointed
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within a tight range during Wednesday’s European session.
After British economic data failed to meet with expectations the Pound softened versus the majority of its most traded currency rivals, paring recent gains.
January’s Nationwide House Prices came in at 4.4% on the year, missing the median market forecast 4.7% growth. On a monthly basis, January’s Nationwide House Prices hit 0.3% which was below the market consensus of a 0.6% rise in prices. What’s more, December’s BBA Loans for House Purchase was unable to equal the projected rise from 44533 to 45500, with the actual result dropping to 43975.
Mark Hayward, managing director of the NAEA, said: ‘We are still waiting to see new homes being built, and while we wait, house prices continue to rise. There is some potential light for first-time buyers – once the new tax rate increase in April is in place we may see less investment from buy-to-let or second-home investors, which may mean less competition for first-time buyers.’
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.2023.
New Zealand Dollar to Pound Sterling (NZD/GBP) Conversion Rate Predicted to Trend Narrowly after Asian Stocks Extended Rout
Despite a complete absence of domestic data to provoke volatility, the New Zealand Dollar softened versus the majority of its most traded currency rivals. The depreciation can be linked to damp market sentiment following a drop in the Shanghai Composite Index by over 0.5%. Also hindering demand for the ‘Kiwi’ (NZD) is low dairy prices. During the Australasian session, however, there is the potential for significant ‘Kiwi’ volatility in response to the Reserve Bank of New Zealand (RBNZ) interest rate decision although there is no forecast change in the overnight cash rate.
‘The RBNZ policy decision will be announced at 7am Syd/9am local Thu/3pm Wed NY. We expect the RBNZ to keep the OCR on hold at 2.50%, but to shift from a conditional easing bias (“the Bank will reduce rates if circumstances warrant”) to an unconditional one. NZ swap rates and the NZD should fall slightly in response,’ stated analysts from Westpac.
‘While growth remains solid, since the Dec meeting, CPI undershot the RBNZ’s forecast even excluding petrol. Despite market turmoil, the trade-weighted exchange rate has held at a higher level than the RBNZ forecast and the housing market has also turned out significantly weaker than expected. Westpac’s forecast is still for two cuts, most likely in Jun and Aug, though risks are that we could see the RBNZ move earlier in March,’ Westpac added.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dropped to a low of 2.1958.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast: FOMC and RBNZ Rate Decisions to Provoke Volatility
Whilst neither the Federal Reserve nor the Reserve Bank of New Zealand are expected to alter monetary policy at this time, both interest rate decisions have the potential to provoke market volatility. Therefore, these key decisions will be very likely to have a significant impact on the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate.
Thursday is also likely to see GBP/NZD movement in response to fourth-quarter British Gross Domestic Product.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate reached a high of 2.2153 during Wednesday’s European session.